20 November 2008
Ministry of Finance
Joint statement from the Ministers of Finance in Denmark, Finland, Norway and Sweden regarding help to Iceland (Nov. 19/20)
The IMF Executive Board has today approved a financial package for Iceland. This is a first step to get Iceland out of its current serious financial and economic situation. The banking crisis in Iceland is of unprecedented proportions and has serious implications for the country's economy.
Within the framework of the IMF-supported programme, the Nordic countries - Denmark, Finland, Norway and Sweden - have worked closely together and jointly decided to supplement the IMF financing of US$2.1 billion with additional loans of US$2.5 billion.
- We stress that, as outlined in the IMF programme, an ambitious multi-year fiscal consolidation programme will help Iceland stabilize the economy, including the exchange rate, and reduce public debt over the medium-term. We understand that Iceland is fully committed to honouring its international obligations.
- We have worked intensively with our Icelandic colleagues and our countries' central banks to address the crisis in Iceland, building on the decision by our Prime Ministers to establish a Nordic joint task force on October 27. We also appreciate the interaction with EU colleagues and the IMF to promptly move the process forward.
- The establishment of the Nordic joint task force has been very important to work as quickly as possible and arrive at a solution. It has been a great strength that we have had a clear common view on how to proceed and best help Iceland in this very difficult situation.
- The work with implementing the IMF programme will not be easy but given appropriate measures we believe that there is a good basis for rebalancing the economy. We stand ready to assist Iceland in the spirit of continuous Nordic cooperation.
Anders Borg, Kristin Halvorsen, Jyrki Katainen and Lars Løkke Rasmussen
Press Secretary to Anders Borg
work +46 8 405 10 00
Anna Charlotta Johansson
work +46 8 405 10 00